News Release

NuStar Expands Its Leadership in the Asphalt Industry with Investment in Warm-Mix Asphalt Technology

New Generation of Asphalt has Dramatic Environmental and Paving Quality Benefits

SAN ANTONIO--(BUSINESS WIRE)--Apr. 27, 2009--
When NuStar Energy L.P. (NYSE: NS) spun off as an independent company in
April 2007, the company’s stated goal was to expand beyond its pipeline
and terminal operations to become a leader in the asphalt industry. To
meet that goal, NuStar first developed an asphalt marketing and trading
group, and then purchased two asphalt refineries in March 2008 to become
the third-largest asphalt producer in the nation. Now, the company is
leading the way in the implementation of new technology to blend and
supply the next generation of asphalt known as warm-mix asphalt.

NuStar has begun installing systems at its asphalt terminals that will
allow it to blend and supply warm-mix asphalt to its customers.
Traditional hot-mix asphalt must be heated between 300 and 350 degrees
as it is mixed with rock material at a hot-mix asphalt plant and then
used to build or repair roads. The warm-mix technology NuStar is
investing in and implementing decreases that temperature by 50 to 100
degrees. There are many benefits to this temperature decrease, including
reduced emissions, reduced fuel usage to heat the asphalt, better
pavement quality, and a longer paving season as you can lay warm-mix
asphalt in cooler weather.

NuStar’s system will add and blend a waterless asphalt binder into
conventional asphalt at its terminals, and the binder changes the
properties of the asphalt to make it usable at the lower temperatures.
The binder, named Evotherm 3G, is marketed by South Carolina-based
MeadWestvaco. Customers will not have to make any investments in
additional equipment to use the product. Other existing warm-mix
technologies require costly equipment to be installed at the asphalt
production facility or hot-mix plant. And, the material can be applied
to roads using standard paving equipment.

“We’re excited to offer this new product line because it is a ‘win-win’
situation in every way,” said Curt Anastasio, NuStar President & CEO.
“It’s a win for the environment in terms of emission reductions. It’s
also a win for our customers because they will benefit from fuel savings
and they will have access to a product that is easier to work with as
they build and repair roads. Plus, they will be able to take advantage
of this product with absolutely no capital investment at their
facilities. And, it will be a win for the nation as a whole because
research shows that warm-mix technology will result in better roads.”

NuStar plans to have its systems in place and begin making the product
available in the Atlanta market on May 1, the southern New Jersey market
on May 15, the Houston market on June 1, and the Baltimore market on
July 1. The company is also looking at opportunities for installations
at some of its other asphalt terminals in the coming paving season.

Energy Savings and Environmental Benefits

Because less fuel is needed to heat the asphalt, documented fuel savings
for asphalt users generally range from 10 to 30 percent. The decreased
heat and fuel usage also have proven air quality benefits. From a
standard hot-mix plant, volatile organic compounds (VOCs) are reduced by
50 percent; nitrogen oxide (NOx) decreases by 60 to 70 percent; carbon
dioxide (CO2) is reduced by 30 to 40 percent; and sulfur dioxide (SO2)
is reduced by 35 percent. Research also shows that every 10 degree
reduction in asphalt mix cuts the fumes in half, so the 50-100 degree
reduction in warm-mix asphalt virtually eliminates fumes and odors. And,
dust is reduced by 20 to 25 percent.

Based on these reductions, it is estimated that if all roadwork in the
nation were to be done with warm-mix asphalt, it would be the equivalent
of removing 1.5 million cars from U.S. roads.

And while asphalt is already the most recycled product in the world as
the material has been reclaimed and reused in new asphalt mixes for many
years, warm-mix allows for increased use of recycled asphalt pavement
(RAP). That is because the properties of warm-mix interact better with
the RAP and allow for higher percentages of the recycled material to be
used in an asphalt mix.

Pavement Construction and Quality Benefits

While warm-mix technology was originally introduced as an initiative to
improve energy efficiency and environmental performance, testing and
early applications of the product in areas from research test tracks
throughout the world -- from California’s Route 1 to the German Autobahn
-- have shown that there are also improvements in workability and
pavement quality.

For instance, pavement life is increased because the lower-mix
temperature results in reduced oxidation and aging of the asphalt.
Warm-mix additives improve compaction of the asphalt, which results in a
more dense and stable road surface. The improved workability of warm-mix
also reduces the paving limitations associated with cooler weather,
which causes hot-mix asphalt to cool too rapidly and hinders proper
application and compaction. So warm-mix will enable road construction
and repair beyond the normal “paving season” that is typically from
April through October. And, because the warm mix is not as hot to begin
with, less time is required to cool the mix before a road can be opened
or reopened to motorists.

Warm-mix also dramatically improves working conditions for road
construction workers with the virtual elimination of smoke and fumes,
and, much cooler working conditions.

“The introduction of warm-mix asphalt is an important step in our
evolution as an asphalt company,” Anastasio added. “And going forward,
we will continue looking for newer and better ways to serve our
customers and improve our nation’s roadways.”

About NuStar Energy L.P.

NuStar Energy L.P. is a publicly traded, limited partnership based in
San Antonio, with 8,491 miles of pipeline, 82 terminal facilities, four
crude oil storage tank facilities and two asphalt refineries with a
combined throughput capacity of 104,000 barrels per day. One of the
largest asphalt refiners and marketers in the U.S. and the second
largest independent liquids terminal operator in the nation, NuStar has
operations in the United States, the Netherlands Antilles, Canada,
Mexico, the Netherlands and the United Kingdom. The partnership's
combined system has over 91 million barrels of storage capacity, and
includes two asphalt refineries, crude oil and refined product
pipelines, refined product terminals, a petroleum and specialty liquids
storage and terminaling business, as well as crude oil storage
facilities. For more information, visit NuStar Energy L.P.'s Web site at www.nustarenergy.com.